Magma Fincorp update on liquidity position

Magma Fincorp today announced that it remains very well capitalized with capital adequacy ratio of over 26%. The company has a granular retail presence within its four businesses i.e., Vehicle Finance (ABF), Affordable Home loans, Affordable loans against property, SME finance and General Insurance.

Update on Liquidity Position:

- Magma raised new liabilities amounting to over Rs 2150 crore entirely from long-term sources during the Oct- Dec 2019 quarter; Of this, funds raise in form of Term Loans and Debentures constituted approx. Rs 1300 crore.

- Magma has a surplus in matching of Assets and Liabilities in each time bucket across 0-1 year.

 

- The Company has adequate liquidity cushion of over Rs 2300 crore at consolidated level as on 31 December2019, against its debt repayments due amounting to just about Rs 425 crore till March 2020.

- With excellent liquidity and a strong pipeline of new long-term funding, we continue to witness softening in cost of incremental borrowings. Magma expects the overall cost of borrowings to start softening from Q1FY21 and onwards.

- Considering the comfortable liquidity position, Magma facilitated a request by an investor for early redemption of Debentures of face value of Rs. 200 crore through repurchase in December 2019.

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